Telegram Posts 150% Revenue Growth, $540 Million Profit in 2024

Telegram, the privacy-focused messaging platform, has made significant strides in its monetization efforts with a strategic partnership and a substantial bond offering. The company announced an exclusive distribution agreement with xAI, the artificial intelligence venture led by Elon Musk. Under this deal, xAI will pay Telegram $300 million in cash, along with equity and 50% of all Grok-related subscription revenue generated through the platform. This partnership will integrate Grok, Musk’s LLM chatbot, into Telegram for one year, marking a pivotal moment in Telegram’s history as it shifts from a donation- and debt-fueled model to a more sustainable revenue stream.

Telegram’s CEO, Pavel Durov, celebrated the collaboration, emphasizing that the integration of Grok will not compromise user data. “No Telegram data will be supplied for Grok training,” Durov stated, addressing concerns about data privacy. This move positions Telegram ahead of competitors like WhatsApp and Snapchat, who have struggled to monetize AI features within their messaging ecosystems.

In addition to the xAI partnership, Telegram disclosed its first-ever profit of $540 million in 2024, with revenue reaching $1.4 billion. This dramatic turnaround from previous years of operating at a loss is attributed to the platform’s 15 million paying users and organic growth of 2.5 million users per day. For 2025, revenue is forecasted to reach $2 billion, with profits exceeding $700 million, validating Telegram’s long-gestating monetization model.

Alongside the AI deal, Telegram completed an oversubscribed $1.5 billion bond offering at a 9% yield. Major backers included prominent investment firms, indicating strong investor confidence in Telegram’s growth prospects despite ongoing legal challenges faced by Durov. The bond includes an IPO-linked conversion feature, suggesting that Telegram may go public before 2030. However, some analysts speculate that the high-yield raise could serve as a bridge or hedge, allowing Telegram to secure growth without public-market scrutiny while Durov navigates his legal issues.

Despite these positive developments, a significant legal cloud looms over Telegram’s future. Durov was arrested in France in August 2024 and subsequently indicted on 12 preliminary charges, including non-cooperation with child safety investigations. He remains under judicial supervision and is barred from leaving France. A May 12 court ruling blocked his planned trip to the U.S. to meet investors, raising concerns about potential delays or derailment of IPO ambitions and governance issues. The legal case also highlights broader regulatory questions about the liabilities of end-to-end encrypted app providers.

Telegram’s strategic moves, including the xAI partnership and the bond offering, signal a company evolving into a sustainable business. However, the ultimate outcome of Telegram’s journey—whether it becomes the next great tech IPO or a cautionary tale of platform governance in the age of encryption—may hinge on the resolution of Durov’s legal challenges. The company’s ability to navigate these issues will be crucial in determining its future trajectory in the tech industry.